The prosecutor's appeal is dismissed.

The summary of the grounds for appeal (in fact, misunderstanding of legal principles) is about the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement).

The Defendant did not have any justifiable reason not to comply with the request for return by the victim who acquired stocks in the name of L, 500,000 shares (hereinafter “instant shares”).

A half-yearly report published by the Defendant around August 16, 2016 (hereinafter “halfyearly report of this case”) includes the purport that the Defendant completed a subrogation for approximately KRW 2.7 billion of N’s embezzled amount and that the Defendant completed a claim protection measure against the most paid amount, which is a false statement on important matters.

Judgment

As to the prosecutor's assertion to the same effect as in the judgment of the court below on the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement), the court below determined that the evidence submitted by the prosecutor alone was insufficient to recognize the defendant's intention of refusing to return or deliver the share certificates with the knowledge that the victim is a lawful and effective transferee, i.e., the intent of embezzlement, and further, there is no evidence to acknowledge that the defendant

The secured shares are kept in the Korea Securities Depository, so the transfer of shares during the period of safekeeping cannot be made by the delivery of share certificates, and the transfer of shares during the period is to transfer the shareholder's right to claim the return of share certificates to the transferee.

On July 22, 2016, the Defendant assumed office as the representative director of J Co., Ltd. (hereinafter “instant company”). On November 2015, the victim was not in the position of the representative director of the instant company, and around July 2016, the victim was not in the position of the representative director of the instant company.